What did the Tribunal hold?

The Tribunal held that as per the NCLT order under the Insolvency & Bankruptcy Code, all liabilities and proceedings prior to the NCLT order stand extinguished. Following precedents, the revenue's appeal was dismissed.

The revenue appealed against an order of the CIT(A) for AY 2014-15. The assessee submitted that a National Company Law Tribunal (NCLT) order under the Insolvency & Bankruptcy Code extinguished all pending proceedings, including this appeal.

What were the issues?

Whether an appeal filed by the revenue is automatically extinguished and ceases to exist due to an order passed by the National Company Law Tribunal under the Insolvency & Bankruptcy Code.

DCIT vs M/S Atlantic Projects Limited | ITAT Kolkata 2022

Income Tax Appellate Tribunal, “C” BENCH: KOLKATA

Before: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Heard together (2 matters)

I.T.A. No. 1371/Kol/2019

ITA No. 2404/Kol/2016

Read from the judgment's own cause title. This page is filed under one of them.

Per Shri Rajesh Kumar, AM:

This is an appeal preferred by the revenue against the order of the Ld. Commissioner of Income Tax(Appeals)-22, Kolkata (hereinafter referred to as the Ld. CIT(A)”] dated 27.02.2019 for the AY 2014-15. The revenue has assailed the order of Ld. CIT(A) on various grounds.

At the outset, the Ld. Counsel of the assessee brought to the notice of the Bench that an order passed by the National Company Law Tribunal, Kolkata Bench

Assessment Year: 2014-15 M/s Atlantic Projects Ltd. dated 25.11.2021 under the provisions of Insolvency & Bankruptcy Codeand submitted that by virtue of the said order of National Company Law Tribunal, all taxes, duties, penalties, interest and cess etc. under any provisions of Act and also all the proceedings including the appellate proceedings pending on the date of order of the National Company Law Tribunal including the present appeal by the revenue for AY 2014-15 are automatically extinguished and ceased to exist. The ld AR therefore prayed that in view of the said order the present appeal of the revenue being relating to the period prior to the date of the above said order may kindly be dismissed. To defend his agruments , the ld counsel relied on the decisions of Hon’ble Kolkata High Court in IA No. GA/1/2022; GA/2/2022 in the case of PCIT vs. M/s Hindusthan National Glass & Industries dated 22.07.2022 and also by the decision of Co-ordinate Bench of Kolkata in the case of Palogix Infrastructure Pvt. Ltd. vs. ACIT in for AY 2010-11 dated 27.10.2020.

The Ld. D.R. fairly agreed to the contentions of the assessee that in the present assessee’s case the National Company Law Tribunal has passed the order under the provisions of Insolvency & Bankruptcy Code but insisted on restoring the appeal to the file of the ld AO so that the facts could be verified and decided accordingly.

After hearing the rival contentions and perusing the material on record, we note that the National Company Law Tribunal has passed an order under the Insolvency & Bankruptcy Code dated 25.11.2021. In terms of the provisions of Insolvency & Bankruptcy Code, all the liabilities under any provisions of the Act including income tax, interest ,cess, penalties etc., and also all proceedings prior to the date of passing the order by National Company Law Tribunal stand extinguished. We have perused the decision of the Hon’ble Calcutta High Court in IA No. GA/1/2022; GA/2/2022 in the case of PCIT vs. M/s Hindusthan National Glass & Industries dated 22.07.2022 and also by the decision of Co-ordinate Bench of Kolkata in the case of Palogix Infrastructure Pvt. Ltd. vs. ACIT in for AY 2010-11 dated 27.10.2020 and find that similar ratio has been laid in both the above decisions.

Assessment Year: 2014-15 M/s Atlantic Projects Ltd. Accordingly, respectfully following the ratio as laid in the above decisions ,the appeal of the revenue is dismissed.

In the result, all the appeal of the revenue is dismissed.

Order is pronounced in the open court on 1st September, 2022

Sd/- Sd/- (Sonjoy Sarma /संजय शमा�) (Rajesh Kumar/राजेश कुमार) Judicial Member/�या�यक सद�य Accountant Member/लेखा सद�य Dated: 1st September, 2022 SB, Sr. PS Copy of the order forwarded to: 1. Appellant- DCIT, Circle-11(1), Kolkata 2. Respondent – M/s Atlantic Projects Ltd., 1st Floor, P-22, CIT Road, Scheme-55, Kolkata-700014 3. Ld. CIT(A)- 22, Kolkata (Sent Through E-mail) 4. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail)

D.C.I.T.,CIRCLE-11(1), KOLKATA vs. M/S ATLANTIC PROJECTS LIMITED, KOLKATA

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